SUMMARY ON THE ASSESSMENT OF IMPLEMENTATION OF … · 2020. 4. 21. · reserved AGPO is akin to enhancing participation of the people in county development and devolution of power

The Institute for social Accountability

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SUMMARY ON THE ASSESSMENT OF IMPLEMENTATION OF ACCESS TO GOVERNMENT PUBLIC PROCUREMENT

(AGPO) ON PROMOTION OF PREFERENCE AND RESERVATION SCHEMES FOR DISADVANTAGED GROUPS

IN ELGEYO MARAKWET COUNTY

JANUARY

2020The Institute for social Accountability

The Institute for Social AccountabilityP.O. Box 48353 - 00100, NairobiTel: +254 20 4443676 / [email protected]


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JANUARY2020

ASSESSMENT OF IMPLEMENTATION OF ACCESS TO GOVERNMENT PUBLIC PROCUREMENT (AGPO) ON PROMOTION OF PREFERENCE AND RESERVATION

SCHEMES FOR DISADVANTAGED GROUPS INELGEYO MARAKWET COUNTY

DISCLAIMER

This summary report was compiled from primary and secondary data, both published and grey literature, and extracts made through interviews. The National Government under the Department of Public Procurement and the County Government of Elgeyo Marakwet Department of Public Procurement and the representatives of National Government Affirmative Action Funds (NGAAF), Youth Enterprise Development Fund (YEDF), Women Enterprise Fund (WEF) and other Development Projects participated.

The findings especially the views presented do not in any way present the values of The Institute of Social Accountability (TISA), HIVOS (Donors), and the respective Departments of Public Procurement (at National and at County level).


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Table of Contents DISCLAIMER ..................................................................................................................ii

Background ....................................................................................................................1

1.Key findings .................................................................................................................1

1.1 Awareness of Preference and Reserved 30% Quota for AGPO................................2

1.2Participation in the Reserved Quota AGPO ..............................................................2

1.3Access Finance for Preference and Reserved 30% Quota AGPO ..................................3

1.4 On Government financing, ...................................................................................... 3

1.5 Perception on the County Never Paying Tenders ....................................................4

1.6 Perception on County Capacity Building and Training on AGPO .............................4

1.7 Perception on County AGPO Legal/Regulatory Framework ....................................5

1.8 Ethics in Public Procurement with Reference to 30% AGPO ..................................5

1.9 On Reporting and Monitoring and Evaluation (M&E), ............................................ 6

2. Key Challenges, Suggested Solutions and Strategies to promote women, youth and

PWDs Participation in AGPO ..........................................................................................6

2.1 Challenges to implementation of reserved and preferential 30% AGPO ................6

2.2 Mitigation Strategies for Challenges Mentioned ....................................................6

2.3 Strategies to promote Women, youth and PWDs Participation in AGPO ................7

3. Best practices in AGPO ..............................................................................................7

3.1 National level ............................................................................................7

3.2 County level ...............................................................................................7

4. Recommendations .....................................................................................................8

5. Conclusion ..................................................................................................................8


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SUMMARY ON THE ASSESSMENT OF IMPLEMENTATION OF ACCESS TO GOVERNMENT PUBLIC PROCUREMENT (AGPO) ON PROMOTION OF PREFERENCE

AND RESERVATION SCHEMES FOR DISADVANTAGED GROUPS INELGEYO MARAKWET COUNTY

Background

Open Government Partnership (OGP) provides a renewed commitment to public services delivery. It embodies openness, accountability and participation of the right-holders and lies emphasis to timely, reliable, accessible, quality and comprehensive information to foster empowerment of civil society actors and citizens to engage government and hold it accountable for its actions. It is in this regard that The Institute for Social Accountability (TISA) is implementing a HIVOS project called ‘Civic Engagement for Open Contracting’ in Elgeyo Marakwet. The project aims at improving transparency and accountability in public procurement through creating awareness hence enhanced transparency in procurement processes.

TISA in collaboration with the County Government of Elgeyo Marakwet and other civil society partners commenced this rapid assessment on status of 30% reservation of AGPO the county. The study involved at least 61% of the special category who had ever participated and with knowledge on AGPO. The assessment targeted to:

(a) Assess the level of implementation of Government Public Procurement on promotion of preference and reservation schemes for disadvantaged groups (AGPO) in Elgeyo Marak wet County targeting youth, women and PWDs;

(b) Identify gaps, challenges and best practices for the period 2013-2019; and

(c) Generate evidence to inform capacity building, sensitization and advocacy of stakeholders towards effective implementation of AGPO.

The data collection was three pronged: street-level survey targeting majorly women, youth and PWDs, Key Informant Interviews (KIIs), and focus group discussions.

The research lead was required to

a) Undertake a review of all the preliminary policy and legislative documents availed by the Elgeyo Marakwet County Government and National Government to understand their approach to AGPO.

b) Based on this review, infuse Rights Based Approach into the assessment of AGPO and assess this for alignment with the Constitution of Kenya (2010).

c) Field questions and comments from the inception meeting to provide guidance and advise on Intergovernmental Relations, public participation and related issues e) Review field data analysis and input into the final assessment report.

1. Key findings

1.1 Awareness of Preference and Reserved 30% Quota for AGPO

This subsection presents the awareness of the Elgeyo Marakwet Community on the Preference and Reserved 30% AGPO.


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Table 1: Level of Awareness on the Preferential and Reserved 30% Quota AGP

Findings show that nearly three-quarters of those who had ever participated in AGPO were aware it was their constitutional right, responsibility and entitlement to participate in the preferential and reserved 30% AGPO for special categories. The study found Keiyo North to have the highest uptake of AGPO and Marakwet West to be lowest at 10%. The level of training on 30% AGPO averaged at 30% for those who were active participants. The most urbanized area of Iten had more people reporting training.

1.2 Participation in the Reserved Quota AGPO

Public participation in public sector development is a value and principle that permeates the entire Constitution of Kenya 2010.9 Participation of special categories on preferential and reserved AGPO is akin to enhancing participation of the people in county development and devolution of power and service delivery.

The figure presents some of the perceived beneficiaries of 30% of AGPO in Elgeyo Marakwet County.

Figure1: Perception on the Beneficiaries of 30% AGPO

The participants of the study believed that youth who are sons and daughters or with close

Particulars Keiyo Keiyo Marakwet Marakwet EM

North South East West Total

Awareness of Implementation of Reserved/ 96% 76% 77% 25% 64%

Preferential 30% AGPO

Awareness of Beneficiary of 30% AGPO 72% 48%% 47% 10% 41%

Trained on Technical Skills on 30% AGPO 78% 21% 10% 5% 30%

Awareness of the Right to AGPO 98% 61% 79% 67% 75%

Organized women in townPersons with Disability in Groups

Prominent PWDsPWDs in groups

Women in Rural AreasYouth in urban areas of Elgeyo MarakwetYouths in rural areas of Elgeyo Marakwet

Youths of Elgeyo Marakwet living in diasporaYouths of Wealth/Prominent personalities

Other

0% 05% 10% 15% 20% 25% 30%


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relationships of wealthy or prominent personalities of Elgeyo Marakwet or with association to the county benefit a lot in 30% AGPO. The second category of the perceived beneficiaries were youth in urban areas of Elgeyo Marakwet. The PWDs were least perceived as beneficiaries of AGPO process which implies that they have low access to AGPO.

1.3 Access Finance for Preference and Reserved 30% Quota AGPO

The study has established that nearly 85% of the participants did not reserve more than Ksh. 500,000 towards supporting the AGPO process. This means they certainly needed external financing to do their work. Some of the common sources finance were Commercial Bank loans/overdrafts (39%), SACCOs (21%), informal money lenders at 17% and Deposit-Taking Micro-Financial Institutions (9%).

Figure 2: Awareness of the Sources of Finance

1.4 On Government financing,

The National Government affirmative action funds such as UWEZO (26%), WEF (22%) and YEDF (21%) were the most identified as facilitating AGPO. Between FY 2017/18 and FY 2018/19, the beneficiaries of amounts less than Ksh. 1,000,000 had reduced from 55% to 48%. This was positive as more beneficiaries got more than Ksh. 1,000,000 in tender value.

These funds enabled the beneficiaries to undertake economic activities like construction and works (31%) and retail/wholesale/trade (46%).

There was aggregate improvement on the proportion of special category beneficiaries of AGPO by 73%. The PWDs and women were the most improved. On trend of compliance of Elgeyo Marakwet with the legal 30%, the county managed above 30% in FY 2017/18.

Training on AGPO was low. Keiyo North recorded more participants in groups trained in AGPO and Marakwet West recorded least. Level of satisfaction with training and capacity development was lowly rated.

Shylock/informal lenders Grant

LPO/LSO Financing Saccos

Deposit-Taking Micro - Financing Institutions Commercial banks overdrafts/loans

Fintechs. Tala, Mshwari, KCB Mpesa, Timiza

21

9

394

1617

4


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1.5 Perception on the County Never Paying Tenders

Figure 2: Perception on the County Never Paying Tenders

The fear for non-payment was 37%, implying that nearly four (4) out of the 10 AGPO participants did not have the belief that after delivery they will be paid. There was a pattern that sub counties with highest level of awareness and participation had least fear of perceived non-payment upon delivery.

1.6 Perception on County Capacity Building and Training on AGPOThe state of training on AGPO processed was assessed

Figure 3: Belonging to Groups Trained on 30% AGP

The rating for formal AGPO training was 29%. Keiyo North had the largest proportion (70%) and Marakwet West had the least proportion of AGPO beneficiaries’ requisite training. Training and sensitization on AGPO should be considered and continually undertaken.

1.7 Perception on County AGPO Legal/Regulatory Framework

The level of Awareness on the requirement for the prequalification for 30% AGPO was examined.

Figure 4: Level of Awareness on the AGPO Legal Requirements

60

50

40

30

20

10

0Keiyo North Keiyo South Marakwet East Marakwet West

2317

33

50

Aggregate

19

60

50

40

30

20

10

0Keiyo North Keiyo South Marakwet East Marakwet West Aggregate

10

5750

3237

100

80

60

40

20


7

4940 43

93

Aggregate


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The level of knowledge and awareness was low. In Keiyo North, there was high awareness on the Public Procurement and Disposal Asset Act (2015) whereas Marakwet West had least awareness. There was low level of rating for the Elgeyo Marakwet compliance with the 30% AGPO. The participants thus rated satisfaction with legal and regulatory framework low.

1.8 Ethics in Public Procurement with Reference to 30% AGPO

Ethics is a principal pillar in having effective, inclusive, and participatory public procurement process, more specifically on the preference and reserved 30% AGPO. Gauging the perception on Transparency in the preferential and reservation 30% AGPO was key:

Figure 5: Perception on Transparency on 30% reserved AGPO process

Aggregate ratings for level of transparency in reserved 30% AGPO in Elgeyo Marakwet was 33%. Keiyo North had 50% whereas Keiyo South and Marakwet East & West recorded 17%, 23% and 19% respectively.

1.9 On Reporting and Monitoring and Evaluation (M&E),

There was no established M&E framework to track AGPO. The department relied on the PPRA Templates. There was limited reporting on the qualitative aspects of the AGPO.

Table 2: Satisfaction with M&E and Reporting of AGPO

Satisfaction with monitoring and evaluation and reporting in AGPO performance was low and required more capacity support.

60

50

40

30

20

10


2317

33

50

Aggregate

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Satisfaction with M&E Indicators

KeiyoNorth

KeiyoSouth

MarakwetEast

MarakwetWest

EMTotal

Satisfaction with monitoring and evaluation of 30% AGPO

44% 16% 26% 11% 23%

Satisfaction with tender evaluation criteria of 30% AGP

21% 10% 12% 3% 9%

Monitoring & Evaluation frequent to maintain performance of the enterprises.

75% 45% 52% 15% 53%


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2. Key Challenges, Suggested Solutions and Strategies to promote women, youth and PWDs Participation in AGPO

2.1 Challenges to implementation of reserved and preferential 30% AGPO

• Low awareness of AGPO especially in the rural areas and among PWDs;• Low capacity to Special Groups to understand the AGPO process and successful bid. • Tender financing is problematic and non-responsive to the special categories under AGPO;• There was identified youth apathy with county tender processes.

2.2 Mitigation Strategies for Challenges Mentioned

i. Publish all procurement opportunities at a central information access point such as the website and disseminate the same information directly to special category groups (Women, Youth and PWDs) business entities.ii. Need to streamline and standardize tender documentation and prequalification procedures for all procurement entities.iii. Permit special category owned businesses to prequalify for groups of contracts or certain categories of goods, works and services.iv. Allow one procurement agency to use the results of prequalification procedures conducted by another procuring agency.v. Tailor the technical, financial and other qualification and prequalification requirements to the size and complexity of the procurement opportunities.vi. Avoid bundling multiple requirements into one large contract. vii. Allow enough time for firms to prepare tenders.

viii. Encourage use of economically most advantageous or best value award criteria where appropriate. It must be noted that such a move must never be applied where the added discretion invites corruption or increases complexity.ix. Procurement entities should provide meaningful feedback to unsuccessful bidders on the strengths and weaknesses of their tenders and areas for improvementx. Implement and enforce rules regarding prompt payment of special categories groups- owned businesses at the prime and subcontract levels and hold procuring entities and government officials accountable for the same.

2.3 Strategies to promote Women, youth and PWDs Participation in AGPO

i. Increased education, outreach to train, and build the capacities of AGPO enterprises to ensure they participate and benefit from government contracts within the next five years.ii. PWDs, women and youth must be able to access timely, accurate and relevant information to enable them to make sound decisions.iii. County Government to ensure appropriate strategies are implemented for improved business performance and particularly in partnership with other actors come up with the best AGPO suppliers of the year per category.iv. Information desks such as the AGPO helpdesk should be extended to ward level either as mobile clinics with specific dates in a month or FY quarter or at the ward offices.v. Promote the use of social media and creation of special categories business networks and alliances among women & youth groups and other key stakeholders including suppliers and customers.vi. Need for more research on Elgeyo Marakwet County Specific data on procurement is a major constraint so studies are required to shed more light on how public procurement data can be generated for policy concerns.


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3. Best practices in AGPO

3.1 National level

i. Mainstreaming of AGPO into the Long-Term Vision of Government Agenciesii. Partnership with Private Sector for Capacity Development, Review of the Implemented AGPO Practices, and Sensitization and training of special groups.iii. Semi-Autonomous State Agencies (SAGAs) taking lead to guide the special groups through training on AGPOiv. Publication of the tenders won and the advertisement of requirement for the tenders online.v. Consistency and frequency in reporting for the implementation status of AGPOvi. Information sharing of the AGPO in multiple platforms- on newspapers, online social media sites and existing physical support sites as Huduma Centre AGPO helpdesks.vii. Robust law to facilitate linkages to different financial sourcing and support for speedy payment

3.2 County level

i. Openness in the sharing of information especially in county website.ii. Segregation of tenders and outlining which one is slotted for PWDs, Women and Youth.iii. Elgeyo Marakwet has fully adopted the use of IFMIS iv. Elgeyo Marakwet has adopted a consultative approach improving the tender execution

4. Recommendations

Citizens and Special Categories Demanding AGPO• You must be competitive. • For special categories, work in groups to build synergy. • Attend the AGPO seminars called for knowledge sharing • Peer learning and mentorship is key success in Government procurement. It is important to form an academy of procurement actors. • Develop good banking behaviour of saving and repayment of credit taken.• Be active citizens. Seek information, participate in county planning and budget processes, and seek redress where you may feel aggrieved.

6.2 Civil Society Organizations and NGOs

• Offer training to the AGPO groups especially in remote set ups • Design programmes of empowerment to the special categories on AGPO. • Conduct social audits on the County Government procurement opportunities offered so that it is clear the public get value for money and that quality of work is adhered. • Mobilize and organize the special categories demanding AGPO to access information, participate and engage in County Budgetary Process. • Support special groups with linkages to financial institutions. • There is need to understand who the ultimate beneficiaries behind the AGPO enterprises are.


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County Government and other Procurement Entities

• Demystify and simplify the supplier application process. • The County should limit bundled contracts. • Reporting of the AGPO processes failure or successes and providing post-award feedback is key. • Need to provide incentives to firms that have good experience and willing to graduate to open tenders.• Need for innovation in County tenders such as the criteria of award. For instance, when deciding among bidders, opt for best value over lowest price. • Discussions on metrics, and monitoring and evaluating progress towards of AGPO policy objectives. • Review affirmative action policies and programmes to build the capacity of PWD, youth, women-owned businesses and to encourage their participation in public procuremen

National Government through Treasury and Directorate of Public Procurement

• There is need to disaggregate the preferential tenders to PWD, Youth, &Women to avoid further marginalization within the special interest groups. • Act on pending bills. • There is need for incentives to banks with products that are friendly to special category groups such as the PWDs to get financing. • Allow one procurement agency to use the results of prequalification procedures conducted by another procuring agency at all levels. • Taxation question- review this and support the special category groups.

Civil Society Organizations

Some of the elevator pitches for AGPO assignment • There is need to breathe life into article 174 (c) and (d) and allow for counties to innovate and conduct a way that responsibly meets the needs of special interest groups.• Champion for decentralization of AGPO and have standards done at national level and support implementation at local level. • Organize a round table meeting between Treasury, AGPO Secretariat, PPRA, Council of Governors, Financial Providers, other stakeholders. • Emphasize the mainstreaming openness, inclusion and participation at all levels for AGPO process. • Question of sustainability and beneficial ownership should be looked at implementation of AGPO program. • Champion for institutionalization of interactive Government- Contractor engagements.


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SUMMARY ON THE ASSESSMENT OF IMPLEMENTATION OF ACCESS TO GOVERNMENT PUBLIC PROCUREMENT

(AGPO) ON PROMOTION OF PREFERENCE AND RESERVATION SCHEMES FOR DISADVANTAGED GROUPS

IN ELGEYO MARAKWET COUNTY

JANUARY

2020The Institute for social Accountability

The Institute for Social AccountabilityP.O. Box 48353 - 00100, NairobiTel: +254 20 4443676 / [email protected]

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SUMMARY ON THE ASSESSMENT OF IMPLEMENTATION OF … · 2020. 4. 21. · reserved AGPO is akin to enhancing participation of the people in county development and devolution of power